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The annual regulation fee levels paid by claims management companies (CMCs) are set in advance of the year to which they apply, and are calculated on the number of CMCs expected to apply or maintain their authorisation into the following year. The consultation paper published on 10 November 2015 set out proposed fee levels for 2016 to 2017.
This paper summarises the responses received to that consultation and sets out the fee levels for the regulation year beginning 1 April 2016. Having considered the responses to the consultation, and all of the factors that contribute to the current and future size of the industry, the Regulator has reached the view that annual regulation and application fee levels should remain unchanged for the 2016 to 2017 regulatory year.
This paper sets out the levels at which claims management regulation fees (the fees collectable for applications for authorisation and the costs incurred by the Regulator through direct regulation of authorised CMCs) will be set for the 2016 to 2017 regulatory year and proposes the methods of calculation by which they will be collected.
This consultation is aimed at persons authorised to provide claims management services in England and Wales under the Compensation Act 2006 and those CMCs and individuals contemplating making an application for authorisation.
Having considered all of the factors that contribute to the current and future size of the industry, and in particular taking into account the general stabilisation of the market, the Regulator has reached the view that fee levels should remain unchanged for 2016 to 2017. This should allow the Regulator to achieve the main objectives of delivering an effective regulatory regime and ensuring that the fee income from regulated CMCs covers the costs of regulation.